<p>
  Residual momentum is the phenomenon that stocks with greater monthly residual returns (normalized by the volatility of the 
  residual returns) tend to outperform those with less. Research has shown the strategy experiences less exposure to the dynamic 
  Fama-French factors, produces greater sharpe ratios, and is more robust out-of-sample than a total return momentum strategy. 
  This strategy is claimed to be more stable throughout the business cycle than a total return momentum strategy. It tends to underperform during trending regimes and outperform during reverting regimes. Additionally, this strategy is less concentrated is small-cap stocks than a total return strategy can sometimes be, leading to less trading costs and reducing the effect of tax-loss selling.
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